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Sinkhole Subdivision Residents File $75-M Lawsuit

Courtesy Rapid City Fire Department Argus Leader

RAPID CITY, S.D. (AP) – Residents of the Hideaway Hills subdivision west of Rapid City in Black Hawk, where 15 homes were evacuated when sinkholes opened earlier this month, are suing South Dakota, Meade County, and developers of the subdivision for more than $75,000,000.

The complaint of 14 specific counts on behalf of 119 homeowners in the subdivision claims that the developers and county officials went ahead even though they knew the land at one time had been part of an underground gypsum mine, the cause of the sinkholes.

Also listed as defendants are the title companies involved in sales of the homes, attorneys for previous owners, and real estate agents who sold the homes. It seeks more than $35,000,000 in compensatory damages and $40,000,000 in exemplary damages.